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Manpower Planning

Objectives:
 To develop the analytical abilities for
understanding the implications of
changes in the manpower situation of a
company and the availability of HR
within the organization and outside, so
as to advise and assist the authorities
concerned in their manpower planning
and development activities.
Objectives:
 To enable the students to acquire the
knowledge and skill necessary for
preparing the manpower plan of a
business enterprise, or to understand
such a plan drawn up by the manpower
planning cell of the company.
Evaluation Pattern:
 Internal Assessment: 30%
 Attendance: 10%
 Presentation: 20%
 Term End Assessment: 70%
 Total: 100%
Topics:
1. Manpower planning
• Objectives (micro and macro levels)
• Benefits, advantages, limitations problems

2. HR planning, linkage of HR planning with


other HR functions, influencing factors in
manpower planning.
Topics:
3. Manpower planning: tools, methods and
techniques
• Job analysis
• Skills analysis/skill inventory
• Performance appraisal
• Manpower inventory
• Use and applicability of statistical and
mathematical models in manpower planning
• Census analysis
• Markov analysis
Topics:
4. Case analysis and presentation

5. Organization as a matrix of jobs


• Organization structuring
• Traditional concepts
• Recent trends
• Role clarity, job enrichment, job enlargement
Topics:
6. Career planning/succession planning

7. Improving manpower utilization and


manpower control
Topics:
8. Manpower planning techniques and
formulation of manpower for:
• Running enterprises with no major expansion
plans
• Running enterprise with major plans for
expansion, modernization, diversification etc.
• A new enterprise about to be set up case
analysis and presentation
Topics:
9. National (macro level) manpower planning
• Various approaches
• Progress in India and abroad

10. Recent trends in HR planning


REFERENCES
 Manpower Planning by Dharmender
Aggarwala – Deep & Deep Publications

 The Manpower Planning Handbook by


Malcolm Bennison and Jonathan Cassen,
McGraw Hill Books Company (UK) Ltd.
What is Manpower?
 Human Resources
 Personnel
 People at Work
 Manpower
Some Definitions of HRM:

 French: “Personnel Management is a


major component of the broader
managerial function and has roots and
branches extending through out and
beyond each organization. It is a major
sub-system of all organization”.
Some Definitions of HRM:
 Edwin Flippo: HRM is “the planning,
organizing, directing and controlling of
the procurement, development,
compensation, integration and
maintenance and separation of human
resources to the end that individual,
organizational and societal objectives
are accomplished”.
Some Definitions of HRM:
 Michael Jucious: HRM is “that field of
management which has to do with planning,
organizing and controlling the functions of
procuring, developing, maintaining and
utilizing a labour force, such that the
(a) objectives for which the company is
established are attained economically and
effectively;
(b) objectives of all levels of personnel are
served to the highest possible degree; and
(c) objectives of society are duly considered
and served”.
Some Definitions of HRM:
 David De Cenzo and Stephen Robbins:
“Human resource management is concerned
with the ‘people’ dimension in management.
Since every organization is made up of
people, acquiring their services, developing
their skills, motivating them to higher levels of
performance and ensuring that they continue
to maintain their commitment to the
organization are essential to achieving
organizational objectives”.
Some Definitions of HRM:
 T. V. Rao: “HRD is a continuous planned process by which
employees are helped to:
(a) Acquire or sharpen capabilities required to perform
various functions associated with their present or
expected future roles;
(b) develop their general capabilities as individuals
and discover and exploit their own inner potentials
for their own and organizational purposes; and
(c ) develop an organizational culture in which
superior-subordinate relationships, team work and
collaboration among sub-units are strong and
contribute to the professional well-being,
motivation and pride of employees”.
Approaches towards Human Beings:
 Mechanical approach – commodity
approach or factor of production concept –
up to 1920.

 Paternalistic Approach – from 1920 till great


depressions – died during the Great
Depressions of 1930s.
Approaches towards Human Beings:
 Social System or Humanistic Approach:
1930-40 Psychologists – Mayo, Mc Gregor,
Leavitt etc. Sociologists – Blake, Dubin etc.

 Human Resource Approach – 1940 onwards


– (distinct needs, aspirations and personality)
– MBO, two way communication, leadership
quality circles etc.
Personnel vs. Human Resource
Management

 Personnel  Human
Management Resource
Management

 Personnel means  HRM is the management


persons employed. PM of employees’ skills,
is the management of knowledge, abilities,
people employed. talents, aptitudes,
creative abilities etc.
Personnel vs. Human Resource
Management
 Personnel  Human
Management Resource
Management
 Employee is treated as  Employee is treated not
an economic man as his only as economic man
services are exchanged but also as social and
for wage/salary psychological man.
Thus the complete man
is viewed.
Personnel vs. Human Resource
Management
 Personnel  Human
Management Resource
Management
 Employee is viewed as  Employee is treated as a
a commodity or tool or resource.
equipment, which can
be purchased or used.
 Employees are treated  Employees are treated as a
as cost centre and profit centre and therefore,
therefore management invests capital for human
controls the cost of resource development and
labour. future utility.
Personnel vs. Human Resource
Management
 Personnel  Human
Management Resource
Management
 Employees are used  Employees are used for the
mostly for organizational multiple mutual benefit of
benefits. the organization,
employees and their family
members.
 Personnel function is
 HRM is a strategic
treated as only an
management function.
auxiliary.
Three Basic responsibilities of HR
Manager and his Department :
 To exert a line manager’s authority on his
unit and employees in HR department.
 He coordinates to ensure HR objectives and
policies of the organization.
 He provides various staff services to the line
managers like recruiting, training, rewarding,
disciplining of employees at all levels.
Environmental Scanning
 Internal Environment (Micro)
 Organizational Objectives
 Production
 Organizational Structure
 Finance
 Organizational politics
 Marketing
Environmental Scanning
 External Environment (Macro)
 Technological
 Customers
 Human Resources in the country
 Social including religious
 Economic
 Political
 Governmental
 Legal
 Trade unions in other organizations
Functions of HRM

 Managerial Functions

 Operative Functions
Managerial Functions

 Planning
 Organizing
 Directing
 Controlling
Operative Functions
 Employment
 Human Resource Development
 Compensation Management
 Human Relations
Employment
 Human Resource Planning
 Recruitment
 Selection
 Induction
 Placement
Human Resource
Development
 Performance Appraisal
 Training
 Management Development
 Organization Change & Development
Compensation Management

 Job Evaluation
 Wage and Salary Administration
 Fringe benefits
Human Relations
 Motivation
 Morale
 Job satisfaction
 Communication
 Grievance & Discipline Procedure
 Quality of work life & quality Circles
Objectives of HRM
 To create and utilize an able and motivated
workforce.
 To accomplish the basic organizational
goals.
 To establish and maintain sound
organizational structure.
 To establish and maintain working
relationships among all the members of the
organization.
Objectives of HRM
 To secure the integration of individual and
groups within the organization by co-
ordination of the individual and group goals
with those of the organization.
 To attain an effective utilization of human
resources in the achievement of
organizational goals.
 To identify and satisfy individual and group
needs by providing adequate and equitable
wages, incentives, employee benefits and
social security measures for challenging
work, prestige, recognition, security, status
etc.
Objectives of HRM
 To maintain high employee morale and
sound human relations by sustaining and
improving the various conditions and
facilities.
 To strengthen and appreciate the human
assets continuously by providing training
and development programs.
Objectives of HRM
 To consider and contribute to the
minimization of socio-economic evils such
as unemployment, under-employment,
inequalities in the distribution of income and
wealth and to improve the welfare of the
society by providing employment
opportunities to women and disadvantaged
sections of the society etc.
 To provide an opportunity for expression
and voice in management.
Objectives of HRM

 To provide fair, acceptable and efficient


leadership.
 To provide facilities and conditions of work
and creation of favourable atmosphere for
maintaining stability of employment.
Role of Human Resource Manager

 Personnel Role
 Welfare & Counsellor’s Role
 Administrative Role
 Fire-fighting and Legal Role
Personnel Role

 Advisory –effective use


 Manpower planning, recruitment,
selection etc.
 Training & development
 Measurement & Assessment of
individual and group behaviour
Welfare & Counsellor’s Role
 Managing services –canteen,
transport co.op., crèches etc.
 Group Dynamics, councelling,
motivation, leadership,
communication
 Research in personnel and org.
problems
Administrative Role
 Salary & wage administration –
incentives
 Maintenance of records
 Human-engineering, Man-machine
relations
 Effective utilization of human
resources
Fire-fighting and Legal Role

 Grievance handling
 Settlement of disputes
 Handling of disciplinary & legal
matters
 Collective bargaining
 Joint consultation and participation
Integration of Interest of
Employees and Management:

Employee’s Interest

Management’s Interest
Employee’s Interest

 Recognition as an individual
 Opportunity for expression and development
 Economic security and growth of employees
 Interest in work
 Safety, healthy working conditions
 Acceptable hours of work and adequate
wages
 Fair and efficient leadership
Management’s Interest
 Lowest unit personnel cost
 Maximum productivity of employees
 Availability and stability of employees
 Loyalty of employees
 Co-operation and commitment of employees
 High organizational morale
 Intelligent initiative of employees
Qualities of Human Resource
Manager
 Sense of vocation
 Capacity of leadership
 Personal Integrity
 Sense of Social Responsibility
 Dynamic personality
 Spontaneity of speech
 Facial expressions
 Courtesy and social awareness
 Personal dignity
Rising Prominence of the Human
Resource Management:
 Emphasis on quality
 Impact of technology
 Liberalization of Indian economy
 Privatization of Indian economy
 Globalization
Rising Prominence of the Human
Resource Management:
 Changes in political philosophy
 Trade unionism
 Cutthroat competition
 International problems
Organization of HR Department
Human Resource Planning
 Human resources are regarded as the only
dynamic factor of production. Other factors
like materials, methods, machines, money
etc. are useless without their effective use by
the human resources. Thus, it is logical that
there should be proper manpower or human
resource planning in the organization to use
the other resources effectively.
Human Resource Planning
 Planning is one of the basic functions of management
of any organization. In commercial and industrial
undertakings, planning has been focused on profit
making, procurement, production, marketing, quality
control and only most recently, manpower. Manpower
planning has now been recognized as an important
part of the overall planning of any organization.
Without the procurement and maintenance of
adequate number of personnel, it is not possible to
realize the goals of the organization. Manpower
planning is essential to put the plans of the
organization into action for the achievement of its
goals or objectives.
Definitions:
 E. W. Vetter, “Human resource planning is
the process by which the management
determines how an organization should move
from its current manpower position to its
desired manpower position to its desired
manpower position. Through planning the
management strives to have the right number
and the right kinds of people at the right
places, a t the right time, to do things which
result in both the organization and the
individual receiving the maximum long-range
benefit”.
Definitions:
 E. Geisler, “Manpower planning is the
process including forecasting, developing and
controlling by which a firm ensures that it has
the right number of people and the right kind
of people at the right places, at the right time
doing work for which they are economically
most useful”.
Definitions:
 Leon Megginson, “Human resource
planning is an integrated approach to
performing the planning aspects of the
personnel function in order to have a
sufficient supply of adequately developed and
motivated people to perform the duties and
tasks required to meet organizational
objectives and satisfy the individual needs
and goals of organizational members”.
Definitions:
 Coleman, “Human resource planning is the
process of determining manpower
requirements and the means for meeting
those requirements in order to carry out the
integrated plan of the organization”.
Nature/Features/Characteristics of
Manpower Planning
 Ascertaining manpower needs in number
and kind.
 It presents an inventory of existing
manpower of the organization.
 Helps in determining the shortfall or surplus
of manpower.
 Initiation of various organizational
programmes.
 Acquisition, utilization, improvement and
prevention of human resources.
Need/Importance/Advantages/Role of
Human Resource Planning:
 It checks the corporate plan of the
organization.
 It helps to face the shortage of certain
categories of employees and/or variety of
skills despite the problem of unemployment.
 The rapid changes in technology, marketing,
management etc. and the consequent need
for new skills and new categories of
employees.
 The changes in organization design and
structure affecting manpower demand.
Need/Importance/Advantages/Role of
Human Resource Planning
 The demographic changes like the changing
profile of workforce in terms of age, sex,
education etc.
 The government policies in respect to
reservation, child labour, working conditions
etc.
 The labour laws affecting the demand for
and supply of labour.
 Pressure from trade unions, politicians, sons
of soil etc.
Need/Importance/Advantages/Role of
Human Resource Planning
 Introduction of computers, robots etc.
 It offsets uncertainty and change and helps
to have right men at right time and in right
place.
 it provides scope for advancement and
development of employees through training,
development etc.
 It helps to anticipate the cost of salary
enhancement, better benefits etc.
Need/Importance/Advantages/Role of
Human Resource Planning
 To foresee the changes in values, aptitude
and attitude of human resources and to
change the techniques of interpersonal,
management etc.
 To foresee the need for redundancy and
plan to check it or to provide alternative
employment in consultation with trade
unions, other organizations and government
through remodeling organizational, industrial
and economic plans.
Need/Importance/Advantages/Role of
Human Resource Planning
 To plan for physical facilities, working
conditions and volume of fringe benefits like
canteen, schools, hospitals, conveyance,
child care centers, quarters, company stores
etc.
 It gives an idea of type of tests to be used
and interview techniques in selection based
on the level of skills, qualifications,
intelligence, values etc. of future human
resources.
Need/Importance/Advantages/Role of
Human Resource Planning
 It causes the development of various
sources of human resources to meet the
organizational needs.
 It helps to take steps to improve human
resource contributions in the form of
increased productivity, sales, turnover etc.
 It facilitates the control of all the functions,
operations, contribution and cost of human
resources.
Factors Affecting Human Resource
Plan

 External Factors

 Internal Factors
External Factors
 Government’s policies
 Level of economic development
including future supply of HR
 Business environment
 Level of Technology
 Natural Factors
 International Factors
Internal Factors
 Policies and strategies of the company
 Human resource policy of the company
 Formal and Informal groups
 Job Analysis
 Time Horizons (long term or short term)
 Type and quality of information
 Company’s production operations policy
 Trade Unions
Problems in Human Resource
Planning
 Resistance by employer
 Resistance by employees
 Resistance by trade unions
 Uncertainties
 Inadequacies of Information system
 Identify crisis
 Slow and gradual process
 Co-ordination with other management
functions
 Integration with organizational plans
Process/Procedure/Steps/Stages in
Human Resource Planning:

1. Analyzing organizational plans.


Process/Procedure/Steps/Stages in
Human Resource Planning:
2. Demand forecasting
 Managerial Judgement
 Statistical Techniques – ratio analysis and
econometric models
 Work study techniques
 Employment trends
 Replacement needs
 Growth and expansion
 Productivity
Process/Procedure/Steps/Stages in
Human Resource Planning:
3. Supply Forecasting

 Existing inventory
 Potential losses – temporary/permanent
 Potential additions
Process/Procedure/Steps/Stages in
Human Resource Planning:
4. Estimating the net human
resource requirement
Process/Procedure/Steps/Stages in
Human Resource Planning:
5. In case of future surplus – plan
for redeployment, retrenchment
and lay-off
Process/Procedure/Steps/Stages in
Human Resource Planning:
6. In case of future deficit –
forecast the future supply of
human resources from all
sources with reference to plans
of other companies
Process/Procedure/Steps/Stages in
Human Resource Planning:
7. Plan for recruitment,
development and internal
mobility if future supply is more
than or equal to net human
resource requirements
Process/Procedure/Steps/Stages in
Human Resource Planning:
8. Plan to modify or adjust the
organizational plan if future
supply will be inadequate with
reference to future net
requirements.

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